Final answer:
Adopting a lead capacity strategy implies the expectation of increased future demand. In financial markets, a rise in supply of funds leads to lower interest rates, while an increase in demand or supply of loans can lead to more loans being made and received.
Step-by-step explanation:
If you adopt a lead capacity strategy, your assumption is that the demand is going to increase in the future. This strategy involves adding capacity in anticipation of an increase in demand. By doing so, you prepare to meet future demand without the risk of losing potential sales due to capacity constraints.
In the context of financial markets, a change that will lead to a decline in interest rates is a rise in supply of funds. This increase in supply, assuming demand remains constant, puts downward pressure on the price of loans, which is the interest rate.
Conversely, a scenario that will lead to an increase in the quantity of loans made and received could either be from a rise in demand for loans or a rise in supply. An increase in demand signifies more borrowers are seeking loans; an increase in supply means there are more funds available for lending.
Answer: b) Decrease